Canadian Oil Sands: A 5% Yield On A Depressed Share Price

By Devon Shire: I remember late 2008 and earlier 2009 vividly. Oil prices had dropped near $30 and there were plenty of talking heads on television calling for it to drop further. The financial health of virtually any company with debt was being called into question and it felt like the world was headed for a depression.Of course the world didn't end, the economy has started growing again and the share prices of most companies have rebounded. Especially the share prices of oil focused companies that now have $100 oil to drive cash flows instead of $30 oil.Here are a few examples:

Kurt Wulff (McDep Associates) submits: Canada offers some of the world’s most accessible, large scale resource opportunities that investors can capture in two pure play buy recommendations – Encana (ECA) in natural gas and Canadian Oil Sands Trust (

Kurt Wulff (McDep Associates) submits: A widening of the price difference between Syncrude and West Texas Intermediate (WTI) to $12 a barrel, which, when added to $105 for the benchmark WTI, magnifies the price of Syncrude to $117, a boon for buy-recommended Canadian Oil Sands (COSWF.PK) .

Frank J. Constantino submits:Investors have been hearing a lot about oil sands stocks recently. The oil sands refer specifically to the Canadian oil sands located in the Alberta region of Canada. The massive crude reserves are second in size only to Saudi Arabia.

On Friday, January 8, Suncor Energy Inc. (USA) (NYSE:SU) extended its hostile takeover bid of $3.1 billion or C$4.3 billion, for Canadian Oil Sands to January 27. The bid was planned to close yesterday, after the shareholders’ decision. However, the extension in the date indicates the merger did not receive approval from majority of the shareholders, The Wall Street Journal (WSJ) reported. Suncor Energy has not yet disclosed the reason for its decision.

Oil companies in Alberta and abroad announced further job and spending cuts today as producers struggle to survive in a world where crude prices have plunged about 55 per cent in the past year.
The move to cut spending comes after the price of West Texas Intermediate moved back into a bear market, dropping below US$50 a barrel earlier this month for the first time in about a quarter. The U.S. benchmark, averaged about US$58 in the second quarter compared with about $103 in the year-earlier period.

By David Zanoni:Canadian Natural Resources (CNQ) is a $34.83 billion large-cap producer of oil, natural gas liquids (NGL), and natural gas. Although it operates primarily in North America (92%), it also has operations in the United Kingdom portion of the North Sea (4%), and offshore of the western coast of Africa (4%).
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